South African Energy Minister signs ZAR56 billion IPPs contract

Jeff Radebe, South African Energy Minister says the signing of the 27 renewable energy projects, worth ZAR56 million, is expected to result in a reduction of the carbon dioxide (CO2) emitted by 8.1 million per year.

“The renewable energy programme is [confirmation of]South Africa’s commitment, together with 195 other countries around the world, to the Paris Agreement for the reduction of CO2 emissions worldwide. It also makes us part of the ever and fast changing global world of a renewable energy industry.

“I can proudly say that it is also an effective climate change mitigant and a water-smart programme. The 27 projects are expected to offset 8.1 million tonnes of CO2 per annum,” said the Minister Radebe.

The Minister made these remarks when he signed the projects on 4 April 2018.

With energy being the biggest consumer of water, Minister Radebe said the devastating impact of the current drought, specifically in the Western and Northern Cape provinces, over the last few years has highlighted the impact of climate change and water security.

“Generating electricity using renewable energy is an efficient way to minimise water consumption in the energy sector. The projects, once fully operational and at maximum capacity, will save 9.6 million kiloliters of water per annum compared to similar MW hours of electricity from fossil fuels. This is equivalent to the water needs of more than 1.2 million people a year.”

The renewable energy programme will further stimulate an indigenous renewable energy industry and contribute to socio-economic development and environmentally sustainable growth.
Renewable energy means affordable electricity

The renewable energy projects are expected to offer cost competitive rates for electricity.

“The estimated, average portfolio cost for all renewable energy technologies under the Renewable Energy Independent Power Producer Procurement Programme has dropped consistently in every bid round.

“Indications are that prices will continue to decrease in future rounds as demonstrated by the recent Solar PV and Wind prices elsewhere in the world. The lower prices coming from the renewable energy projects will provide the much needed relief to indigent households under the current economic conditions, said Radebe.

The national energy regulator, Nersa will continue to play a critical role in ensuring justifiable tariffs to the consumers, while allowing investors in electricity generation to receive a fair return on investment.

“We have to acknowledge that we may not always be achieving the low prices as reported in other parts of the world, however there is a necessity to ensure support of the programme to the transformation objectives of our country,” said Radebe.

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Zweli Sikhakhane is a Web Developer, Digital Marketing Manager and Contributor at BizNis Africa.
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